Tips for Investing in property successfully
Many people dream of making money by investing in property but in the UK and Ireland, many have taken the opportunity to invest in property as there are now more than two million landlords. This is a number that rose by 7% between 2013 and 2014 as they look to take advantage of the sharp increase of people who are forced to live in rental property due to a tough property market for first time buyers. Therefore, understanding how to successfully invest in property is the first step to building a property portfolio.
It all takes time
To invest in property, you will need capital but there is also another commitment that you will need to make and that is your time. Owning a property as a landlord is a completely different ball game when compared to being a homeowner. You will have to be prepared to deal with managing the property, if that is what you choose to do or if you choose to use a management company you will still have your work cut out. There are the emergency calls that you will have to deal with and any other issues that may arise. If you are ready to commit your time, then it is a step in the right direction.
Support and guidance is available
Don’t feel that you have to do it all alone and without any prior knowledge because this can seem daunting. There are many different tools available that will provide you with the information you need. Workshops, online content and seminars are there to provide you with an insight into how it all works. Gain advice and knowledge to prepare you for the world of property investment.
A clear investment strategy
Do you plan to renovate and sell property in order to make a quick profit or do you want to let your properties? What are your mortgage costs and other expenses and will they be covered by the income that your property could generate? These are crucial questions that will enable you to understand what you want to achieve. You may want to turn this into a full-time occupation or you may want to look to seek an extra income as a homeowner. Look at the reasons behind why you want to invest to get a clear indication of what your strategy actually is.
Identify profitable areas
Investors sometimes avoid properties that require work simply because of the time and cost involved. However, a property that requires work and is finished to a high standard will generate a profit in terms of rent and value. This is not as simple as it sounds because this is all about finding the right property in the right location. The area has to be desirable and in demand so research different areas and take advantage of an opportunity when it arises.
Go off map
Sometimes, thinking outside the box works and that is certainly the case when it comes to investing in property. You are not necessarily looking for the best property but the best deal and that means maximizing profits and reducing costs. Some great deals can be seen at auctions but you can also go looking for properties by advertising yourself as an investor looking for properties. It could lead to people who are looking to sell, getting in touch with you or it could give some people something to think about
